Buoyant economy, regulatory reforms has made India the most preferred market for outsourcing business among more than 75 per cent multinational companies, says a survey.

The analysis largely focuses on the responses received from the 50 multinational respondents. (Reuters)

Buoyant economy, regulatory reforms has made India the most preferred market for outsourcing business among more than 75 per cent multinational companies, says a survey. However, higher costs and economic uncertainty following the introduction of demonetisation at the end of last year as well as the impact of the new US administration were found to be concerns with the MNCs, according to the survey carried out by leading real estate consulting firm CBRE. “More than 75 per cent of the multinationals consider India as preferred market for outsourcing,” the survey said.

The analysis largely focuses on the responses received from the 50 multinational respondents. As per the findings, Bengaluru, Mumbai and Delhi NCR have emerged as the most preferred destinations for expansion by the companies.

It also noted that with IT firms in Bengaluru growing larger, an increasing number of companies are opting to expand in tier II cities such as Chennai and Hyderabad, which offer more space to choose from, lower operating costs and rapidly improving infrastructure.

“With corporates increasingly adopting cost effective workplace strategies, we believe that key cities in the country will remain on the radar of domestic and multinational corporates looking to expand their operations,” he added.

The survey found that about 50 per cent of multinationals will invest more in their workplace and space efficiency programmes, ranking it as their main priority for the coming year.